Market Plunges on AI Slowdown Warnings as Oil Prices Hit New High
The global market experienced losses on Monday due to warnings from AI leaders about the need for a slowdown in the development of artificial intelligence. The warning was sparked by concerns that AI could become capable of leading a swarm of agents that could take over the entire internet within six to 12 months.
Nvidia, whose profits have soared because its chips are helping to train AI models, sank 2.8% and was the heaviest weight on the market due to its massive size. Softbank Group, the Japanese giant that is a major investor of OpenAI, lost 10.7% in Tokyo after OpenAI's Sam Altman supported the concept of a slowdown.
The Dow Jones Industrial Average fell by 74 points, or 0.1%, as of noon Eastern time, while the Nasdaq composite dropped 0.4%. Despite these losses, several software companies rose, including Intuit, Autodesk, and Adobe, which tumbled earlier on worries AI-powered competitors would undercut their businesses.
Oil prices continued to climb due to fighting in the Middle East, with Brent crude reaching $107.46 after getting near $110. The price increase has sent the average cost of a gallon of regular gasoline across the country to nearly $4.32 from $4.08 a month ago and $3.18 a year ago.